An Investment Project Has an Initial Cost,and Then Generates Inflows

question 32

Multiple Choice

An investment project has an initial cost,and then generates inflows of $50 a year for the next five years.The project has a payback period of 3.6 years.What is the project's internal rate of return?

• A) 11.18%
• B) 12.05%
• C) 13.47%
• D) 14.66%
• E) 15.89%

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Definitions:

Agonistic

Relating to a physiological response to a stimulus or to the competition between organisms for resources.

Syntax

The set of rules, principles, and processes that govern the structure of sentences in a given language, especially the order of words.

Two-Word Phrases

Pairs of words combined to create a specific meaning or concept, often used in linguistics and study of syntax.

Gestalt Principle

A theory in psychology that proposes the human brain organizes visual elements into whole objects rather than the sum of separate parts.